When I think about Pandora, I mostly just think, "no WAY is this gonna stay free," and feel anxious. Did they touch on that?
Rach -- Tim actually did touch on that several times. In their original business model they were going to have people subscribe to the service, but they found that (a) it was too hard to prevent various hacks to get around that, and (b) they are making bank off of ad revenue. There are some neat web-advertising dynamics that make this possible -- the most obvious being targeting the ad you are personally seeing based on the music you're listening to.
Which explains why I get advertisements for high-end stereos on my electronica station and ads for beer on my rock station.
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